(The Day Ahead is an email and PDF publication that includes the day’s major stories and events, analyses and other features. To receive The Day Ahead, Eikon users can register at . Thomson One users can register at RT/DAY/US. All times in ET/GMT) A slew of data releases in the day includes the national employment report for August from the ADP; Challenger, Gray & Christmas Inc’s report on job cuts for August (0730/1130); international trade data for July from the Commerce Department; weekly jobless claims figures from the Labor Department; Markit’s final composite and services PMI data for August (0945/1345) and the Institute for Supply Management’s non-manufacturing index for August. The Commerce Department’s data is expected to show that the trade deficit widened to $42.2 billion in July from $41.5 billion in June (0830/1230). The Labor Department’s data is likely to show weekly jobless claims increased to 300,000 from 298,000 last week (0830/1230). The Institute for Supply Management’s services industry index is expected to slip to 57.5 in August from 58.7 in July (1000/1400). Federal Reserve Bank of Cleveland President Loretta Mester speaks on the economic outlook, monetary policy and communications before an Economic Club of Pittsburgh/CFA Society Pittsburgh luncheon in Pittsburgh (1230/1630). Federal Reserve Board Governor Jerome Powell is scheduled to speak on “Reforming U.S. Dollar LIBOR: The Path Forward” before a Money Marketeers of New York City dinner (1900 /2300). Also speaking in the day are Federal Reserve Bank of Dallas President Richard Fisher at the U.S. India Chamber of Commerce (2015/0015) and Federal Reserve Bank of Minneapolis President Narayana Kocherlakota at a “Town Hall Forum with President Kocherlakota” (2100/0100).
Demand from miners for maintenance work has picked up for equipment maker Joy Global, after its mining customers struggled with a coal glut. When the company reports third-quarter results, investors will be looking for commentary as to whether miners have started spending on mining equipment.
Verifone, a maker of credit card swipe machines, is expected to report third-quarter earnings above analysts’ estimates, according to StarMine. The company has benefited from retailers upgrading their equipment to add new security features. Investors will look for commentary on the addition of near-field communications, expected in Apple Inc’s iPhone 6, which will help the device connect with payment terminals or ticketing systems.
Mobileye, a maker of driver assistance systems, will be reporting results for the first time after its successful IPO in August. The company is expected to report second-quarter results in line with analysts’ estimates. Mobileye is expected to benefit as more manufacturers include semi-autonomous or autonomous driving technologies in cars in the next five years. Investors will be looking out for updates on full-year revenue and profit.
Life insurer Sun Life Financial’s Chief Executive Dean Connor is scheduled to make a presentation at the Scotiabank Financials Summit in Toronto. Investors will be looking for comments on the company’s financial outlook and possible areas for expansion and acquisitions. A status conference is scheduled in a lawsuit by the U.S. Commodity Futures Trading Commission accusing the Royal Bank of Canada of running a “trading scheme of massive proportion” to gain lucrative Canadian tax benefits. The CFTC’s civil lawsuit, scheduled to go to trial on Nov. 3, alleges that a small group of senior RBC employees created and managed a “wash trading” strategy in which they improperly coordinated to allow subsidiaries of the bank to buy and sell stock futures without taking a position in the market. The hearing is before U.S. District Judge Alvin Hellerstein in Manhattan.
Statistics Canada will issue trade balance data for July. Canada’s trade surplus soared unexpectedly to a two-and-a-half-year high of C$1.86 billion in June, boosted by record exports and falling imports. Expectations of further policy action at the European Central Bank’s meeting are high after ECB President Mario Draghi pledged to use all available tools to keep prices in check. Draghi told a central bank conference in Jackson Hole on Aug. 22 that financial market inflation expectations were falling significantly and the ECB would use “all available instruments needed to ensure price stability.” The Bank of England’s Monetary Policy Committee meeting and rate decision are also expected in the day (0700/1100). (All analysts’ estimates are according to Thomson Reuters I/B/E/S/) (Compiled by Ayesha Sruti Ahmed in Bangalore; Editing by Kirti Pandey)